Notes to SEFA
Title: Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of expenditures of Federal and State awards (SEFSA) includes the federal and State grant activity of the Town of RedSprings under the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in thisSEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only aselected portion of the operations of the Town of Red Springs, it is not intended to and does not present the financial position, changes in net position,or cash flows of the Town of Red Springs.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Loan Balance
Accounting Policies: The accompanying schedule of expenditures of Federal and State awards (SEFSA) includes the federal and State grant activity of the Town of RedSprings under the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in thisSEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only aselected portion of the operations of the Town of Red Springs, it is not intended to and does not present the financial position, changes in net position,or cash flows of the Town of Red Springs.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The outstanding balance of the USDA revenue bonds is $2,966,000. The outstanding balance of the NCORR state revolving loan is $423,258.